GI-products-in-India-editorial-iastoppers
Editorial Simplified

Geographical Indications have the potential to be India’s growth engine [Editorial Simplified]

GIs have the potential to be India’s growth engine. Policy-makers must pay a heed to this and negotiate harder to give Indian GI products their true reward.
By IASToppers' Editorial Board
November 20, 2017

Contents

  • Introduction
  • What is Geographical Indication?
  • Importance of GI
  • GI products in India
  • Concerns with GI’s
  • GI and TRIPS Agreements
  • Critical analysis
  • Prospects of GI products in India
  • Conclusion

Geographical Indications have the potential to be India’s growth engine

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GS (M) Paper-3: “Issues relating to intellectual property rights.”

 

Introduction:

  • The recent overall slowdown in India’s exports, possibly calls for a re-examination of policies essential to propel India’s foreign trade.
  • One such policy is the recognition of geographical indications (GIs).

What is Geographical Indication?

GI-products-in-India-editorial2-iastoppers

  • Geographical Indication (GI) is sign or insignia used on products that have specific geographical origin and possess qualities or reputation that are due to that origin.
  • Such name, sign or insignia conveys assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
  • The status to products marks its authenticity and ensures that only registered authorised users are allowed to use popular product name.
  • Darjeeling Tea, Blue Pottery of Jaipur, Mahabaleshwar Strawberry, Banarasi Sarees and Tirupati Laddus are some of examples for products having GIs.

Importance of GI:

  • Much like trademarks, the economic rationale of GI is based on the ‘information asymmetry’.
  • It is used to tackle the asymmetry between buyers and sellers in the market, and the role of reputation, conveyed through distinctive signs.
  • It helps the producers to differentiate their products from competing products in the market and help them build a reputation and goodwill around their products, to fetch a premium price.
  • The immense revenue potential of GIs necessitated their cross-border protection and thus these were included in the ambit of the TRIPS Agreement.
  • The products not only emerge as a major product in export basket but also helps in promotion of tourism and cultural heritage.
  • This enhance the marketability of such products, and demonstrate that GIs have great potential to play a major role in trade between countries.
  • This further increases the commercial significance of GIs which were not aware to many developing countries like India.

GI products in India:

IASToppers-Geographical-Indication

  • India has plenty of such product which can very well contribute to exports and popularity.
  • Many handicraft products such as Kanjeevaram silk sarees, Pochampally Ikat, Chanderi fabrics, Madhubani paintings, Mysore jasmine, Bidri metalworks, Kotpad handloom, etc, have been registered as GIs in India.
  • Lots of food products and agricultural products are also registered.
  • In fact, six foreign products have also been registered as GIs in India.
  • Over 170 Indian products have been recognised as GIs in India. Evidently, the potential is immense.
  • Since many of Indian GI products are largely exported to EU countries—there is a merit in negotiating to implement equal treatment for Indian GI products. After all, EU is still India’s largest trading partner.

GI-products-in-India-editorial3-iastoppers

Concerns with GI’s:

  • Due to ‘unequal provision or treatment’ meted out to developing countries, they are unable to capitalise their true potential.
  • The issue has gathered momentum with the recognition of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) on GIs as a form of IPR. Article 22 of the Trade-Related Aspects of Intellectual Property Rights agreement says unless a geographical indication is protected in the country of its origin, there is no obligation under the agreement for other countries to extend reciprocal protection.

GI and TRIPS Agreements:

  • The Article 22 of the Agreement forms the centrality of GI protection.
  • It provides for a general level of cross-border protection of GIs in the course of trade, which is extended to India and other developing countries.
  • However, what distinguishes developed countries from India is a special provision under Article 23 for protection of GIs in the form of wines and spirits.
  • The major demanders of this kind of protection were the European countries with their very long tradition in making of wines and spirits.
  • Developing countries, including India, have raised this issue in the Doha Round and in the recent meetings at the WTO.
  • They seek the same higher level of protection for all GIs as was given under Article 23 for wines and spirits.

Critical analysis:

  • The registration is only the first step in the creation of a market for the GI.
  • Benefits can only be realised only when these products are effectively marketed and protected against illegal copying.
  • This protection first gains significance in the domestic context before international protection becomes relevant.
  • However, for internationally recognised products having expansive export market, international protection is of crucial importance.

Prospects of GI products in India:

  • There is a direct link between the GI products and cultural diversity that exists in India.
  • There is also a link to local rural communities, having traditional knowledge of making these products, which in themselves are part of their traditional cultural expressions.
  • Legal protection to GIs also extends to protection of traditional knowledge and traditional cultural expression contained in the products.
  • In doing so, not only are livelihoods protected but also possibilities of employment generation are encouraged.
  • Along with premium prices that many GIs command today, there is a possibility of preserving many traditional skills also.
  • GI will be able to contribute to their foreign exchange as well as protect its exclusiveness, heritage and traditional skills of making such products.

Conclusion:

  • Protection and equal treatment should be provided to developing countries like India.
  • GIs have the potential to be India’s growth engine.
  • Policy-makers must pay a heed to this and negotiate harder to give Indian GI products their true reward.
[Ref: Indian Express]

 

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